The whole idea behind having insurance is to have some form of guarantee in light of life’s uncertainties. Because most of these are unpredictable, it becomes very crucial to have some form of protection.
By the time you start working, you would have heard of many types of insurance policies. You will be told or advised to plan for your retirement or your savings. But when you start planning your family, you begin to have more thoughts about protection your family. This is where you might be investing into fixed deposits, get into new plans and this is where a life insurance plan comes into play.
Many people are still unaware of the importance of having life insurance. In a recent survey, it was found that only slightly more than half of the total population are covered in this form. This is a very dangerous reality and needs to be addresses in the soonest time possible.
When it comes to life insurance, the term death benefit is used. You pay a premium periodically to the insurance company so that in the event of death, your beneficiaries can continue with life in the least inconvenience. Besides that, some of the insurance providers combine death benefit with TPD or Total Permanent Disability. This is very important because it will help to protect your family if you suffer any form of disability which will cause you to be unable to continue working.
Basically, a life insurance policy is in place to prepare your family in the worst-case situation. The basic idea here is to ensure that your loved ones will be able to continue financially should anything happen to you. The death benefit that comes with your policy will eventually replace your income so that your:
Not all insurance companies offer the same type of packages. There are several names or types to it but generally, they are in the following categories: